Stock markets in the U.S. had a mixed performance on Wednesday as investors waited for the Federal Reserve’s decision on interest rates. Tech giant Alphabet’s losses put pressure on the Nasdaq, while a strong performance from Disney helped lift the Dow.
Investors are now expecting the Fed might start cutting interest rates by July, based on data from LSEG. This shift comes after a string of earnings reports last week gave mixed signals—some showed the U.S. economy slowing, while others pointed to a job market that’s still holding up well.
Many are watching closely to see what Fed officials will say about the future of interest rates. Their comments could offer clues about when or if rates might come down this year. This comes as President Donald Trump continues to criticize the Fed’s approach and uncertainty around global trade remains a concern.
Labor Market Still Strong
“The U.S. labor market looks healthy right now,” said Nicholas Brooks, head of economic research at ICG. “That gives the Fed several reasons to hold off on cutting rates in the short term.”
By late morning (11:39 a.m. ET), the Dow Jones Industrial Average had risen 214.58 points (0.53%) to 41,043.58. The S&P 500 was up slightly by 3.59 points (0.06%) at 5,610.50. Meanwhile, the Nasdaq Composite was down 67.29 points (0.38%) at 17,622.37, mainly due to losses in tech stocks.
Alphabet, the parent company of Google, saw its shares drop by 6.4%, dragging down the Nasdaq. The communication services sector also pulled the S&P 500 lower.
Apple and Disney Steal Some Headlines
On a different note, Apple shares dipped to their lowest in almost two weeks. Reports suggest Apple may be working on adding artificial intelligence (AI) features to its internet browser, which stirred both interest and caution among investors.
In contrast, Disney’s stock surged 10.5% after the company posted better-than-expected earnings, driven by strong results from its streaming services and theme parks. This helped give the Dow a noticeable boost.
Earlier in the day, all three main indexes had been trading higher. Market optimism grew after the U.S. government announced it would meet with Chinese representatives in Switzerland over the weekend to restart trade talks. This follows several weeks of back-and-forth tariff announcements between the two countries.
Trade Talks Still Uncertain
Despite the upcoming talks, investors remain cautious. The Trump administration claims it’s making progress with new trade deals, but no solid agreements have been reached so far.
“What investors really want is to see the tariffs rolled back quickly on both sides,” said Brooks. “The longer this uncertainty lasts, the more damage it could do to the global economy.”
Big Movers in the Market
Elsewhere in the market, Uber shares fell 2.2% after the company reported revenue below expectations. Cybersecurity firm CrowdStrike dropped 3.8%, even though it confirmed its outlook for the next two years and announced job cuts.
One of the big winners of the day was Charles River Laboratories, which jumped 14.7%. The company said it had reached a deal with activist investor Elliott Management and raised its forecast for 2025 earnings.
Meanwhile, Arista Networks dropped 7% following its latest quarterly earnings release, which failed to impress investors.
Market Breadth and Stats
On the New York Stock Exchange, more stocks rose than fell, with a 1.92-to-1 ratio of advancing to declining stocks. On the Nasdaq, gainers outnumbered losers by a 1.24-to-1 margin.
The S&P 500 logged 11 new 52-week highs and eight new lows. On the Nasdaq, there were 40 new highs and 66 new lows, showing that while some stocks are breaking out, many others are still under pressure.
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